Iran to IPO NIOC
Iran to IPO NIOC, NIGC assets to attract investment
Wednesday, Sep 13, 2017
Iran looks to lay the groundwork for landmark NIOC and NIGC asset-backed IPOs by broadening and deepening TSE in coming months. Simon Watkins reports from Tehran

In the 12 months since the Joint Comprehensive Plan of Action (JCPOA) came into effect, the value of stocks traded on the benchmark Tehran Stock Exchange (TSE) has more than doubled, to around US$20 billion. This has driven up the exchange’s valuation by nearly 30% over the period.

In the last six months, 45 companies have asked to list their shares and at least 13 major initial public offerings (IPOs) are expected in the next 12 months, according to local finance industry sources, up from seven in the previous year.

By far the most significant of these from the international hydrocarbons industry perspective will be a planned partial IPO of a holding company that would include all oil and gas field discoveries made since May 2016. According to a senior oil and gas industry source who works closely with the MoP, this will be managed by the Ministry of Petroleum (MoP), the National Iranian Oil Co. (NIOC), and the National Iranian Gas Co. (NIGC).

“This first IPO would usher in a similar IPO every year for the foreseeable future in which a set percentage of the holding company would be offered internationally at a level that would yield at least US$8 billion per year for Iran,” he told NewsBase Intelligence (NBI).

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